Lightstone Value Plus REIT Buys Hotels

LVPR pays $21 million for 3 Marriott-branded
properties in Iowa and Ohio

January 03, 2013 04:38 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Lightstone Value Plus Real Estate Investment Trust, Inc. (“LVPR”)
announced today that it has acquired three Marriott-branded hotels in
Iowa and Ohio for an aggregate purchase price of $21 million.

“This acquisition is representative of The Lightstone Group’s ability to
identify attractive investment opportunities and execute on complex
transactions”

The purchased assets are the SpringHill Suites by Marriott and Fairfield
Inn & Suites by Marriott, both in West Des Moines, Iowa, and the
Courtyard by Marriott, in Willoughby, Ohio. The three hotels have a
total of 289 keys.

“These are three well-located premium franchise hotels that we believe
are primed for growth,” said David Lichtenstein, Chairman and CEO of
LVPR. “Two of them, SpringHill Suites by Marriott and Courtyard by
Marriott, have been renovated in the past six months, and the Fairfield
Inn & Suites by Marriott is scheduled for a complete renovation. We
think the locations are ideal, benefiting from the high volume of
business travelers frequenting nearby office parks, as well as excellent
highway access to routes I-80 and I-90, which link various
concentrations of commercial business centers throughout both markets. ”

“This acquisition is representative of The Lightstone Group’s ability to
identify attractive investment opportunities and execute on complex
transactions,” said Lichtenstein. “The hotels were acquired at a
significant discount to replacement cost, providing them with a strong
competitive advantage in their markets and downside protection to LVPR.
We believe they are well positioned to capitalize on the improving
market recovery.” LVPR is a non-traded REIT sponsored by The Lightstone
Group, which is also headed by Lichtenstein. The properties will be
managed by Paramount Hotel Group (PHG), a third- party hotel management
company based in New Jersey.

The 97-suite SpringHill Suites is located adjacent to Interstate 80 and
two miles east of Interstate 35 in West Des Moines. Renovations of $1.3
million were recently completed and included improvements to the lobby,
upgrading bedding and furniture packages and installing new flat panel
televisions.

The 102-room Fairfield Inn & Suites is also located adjacent to
Interstate 80 and two miles east of Interstate 35 in West Des Moines. A
full renovation, costing in excess of $2 million, is planned for the
near future.

The 90-room Courtyard by Marriott in Willoughby is adjacent to
Interstate 90 about 16 miles east of downtown Cleveland. The hotel
recently completed a $1.5 million renovation that included a full
upgrade of guestrooms and corridors and the conversion of the lobby to
the new “Courtyard Bistro” concept.

About LVPR

LVPR is a non-traded REIT sponsored by The Lightstone Group. Founded in
1988 by David Lichtenstein, The Lightstone Group has grown to become one
of the largest privately held real estate companies in the United
States. Its diversified portfolio of industrial, office, retail and
residential real estate assets includes 8.1 million square feet of
commercial space and more than 11,000 multifamily units in 19 states,
the District of Columbia and Puerto Rico.

All statements contained in this press release, other than statements
of historical fact, are forward-looking statements. Forward-looking
statements, which are based on certain assumptions and describe our
future plans, strategies and expectations, are generally identifiable by
use of the words "may," "will," "believe," "expect," "intend,"
"anticipate," "estimate," "project," or similar expressions or
variations thereof. These statements are based on LVPR’s current plans
and expectations and involve risks and uncertainties that could cause
actual future events or results to be different than those described in
or implied by such forward-looking statements. Investors are cautioned
not to place undue reliance on any forward-looking statements.